Which of the following statements about the functions of money is true?(1 point)
Responses
Money is primarily used for saving wealth.
Money is primarily used for saving wealth.
Money does not help in facilitating trade.
Money does not help in facilitating trade.
Money serves three essential functions: medium of exchange, store of value, and unit of account.
Money serves three essential functions: medium of exchange, store of value, and unit of account.
Money can only serve as a medium of exchange.
Money can only serve as a medium of exchange.
Question 2
How does money enhance the efficiency of transactions compared to bartering?(1 point)
Responses
It requires finding a partner with the right goods.
It requires finding a partner with the right goods.
It complicates the trading process.
It complicates the trading process.
It eliminates the need for a common measure of value.
It eliminates the need for a common measure of value.
It allows for immediate exchanges without negotiation.
It allows for immediate exchanges without negotiation.
1 answer
Question 1
The correct statement is:
Money serves three essential functions: medium of exchange, store of value, and unit of account.
Question 2
The correct response is:
It allows for immediate exchanges without negotiation.
Money simplifies transactions compared to bartering, as it removes the need for a double coincidence of wants, thus making trade more efficient.
